Senate Banking Committee to Hold Markup Vote on Crypto Market Structure Legislation, Confirms Senator John Kennedy

Crypto's long march through the institutions just got a major green light. The Senate Banking Committee is officially moving forward with a markup vote on landmark digital asset market structure legislation—a critical step that could reshape how America regulates everything from Bitcoin to DeFi.

The Regulatory Rubicon

Forget vague hearings and theoretical discussions. A markup vote is where the rubber meets the road. It's the committee's chance to amend, debate, and ultimately advance a bill to the full Senate floor. This isn't just talk; it's the legislative process kicking into gear.

Why This Matters Now

The U.S. crypto industry has been operating in a regulatory gray zone for over a decade—a Wild West that fostered innovation but also attracted bad actors and left consumers exposed. Clear rules from Congress could finally provide the certainty that major institutional investors have been waiting for, potentially unlocking trillions in sidelined capital. Of course, Wall Street's old guard will lobby to make those rules fit their existing playbook—nothing like watching incumbents try to write the rules for their disruptors.

The Path Ahead

Passing the committee is just the first hurdle. The bill then faces the full Senate, the House, and the President's desk. But this markup vote signals that serious lawmakers are done kicking the can down the road. They're putting actual text on the table. The details will be everything: Will it stifle decentralization or foster it? Protect consumers without killing innovation?

One thing's clear: the era of 'wait and see' for crypto regulation in America is ending. The machinery of government is finally grinding into motion—let's just hope it doesn't crush the very thing it's trying to harness in the process. After all, nothing says 'financial innovation' like a 500-page bill drafted by committee.

When will the CLARITY Act be passed?

Republican Senator John Kennedy confirmed on January 6 that the Senate Banking Committee will hold a markup vote on crypto market structure legislation on Thursday next week. David Sacks was seen leaving Senator Tim Scott’s office, where about a dozen senators had met to discuss the CLARITY Act.

Kennedy told reporters that Banking Committee Chairman Tim Scott plans to hold the vote regardless of whether full agreement has been reached.

“The chairman is gonna have a vote, come hell or high water, on Thursday for next week,” he said.

The CLARITY Act is intended to define how the SEC and CFTC can supervise crypto markets. It designates the CFTC as the primary spot market regulator for crypto and more clearly defines how securities laws might apply to the sector.

However, there are several unresolved issues regarding the enforcement of the bill. For instance, how to regulate stablecoins that pay interest to holders. Traditional banking groups have argued that allowing stablecoin issuers to offer interest could turn payment tokens into deposit alternatives that compete unfairly with banks.

There are also concerns regarding how to regulate DeFi protocols in terms of anti-money laundering concerns and whether some tokens should fall under SEC or CFTC jurisdiction. The crypto industry fears that giving the SEC primary decision-making power WOULD recreate the enforcement-heavy approach used by the former SEC Chair, Gary Gensler.

Ethical concerns also surround the Trump family’s cryptocurrency ventures, worth hundreds of millions of dollars. These ventures include World Liberty Financial and the Trump memecoin, launched after the 2024 campaign.

World Liberty Financial is a decentralized finance platform where the TRUMP family receives 75% of net proceeds from token sales. By December 2025, the Trumps had profited $1 billion on proceeds while holding $3 billion worth of unsold tokens.

The company has been involved in several conflicts of interest due to Donald Trump’s involvement. This includes alleged secret deals with foreign entities and businesspeople who had previously been under criminal investigation or convicted. Chinese-born billionaire Justin SUN invested $30 million into World Liberty Financial, and shortly after Trump took office, an SEC investigation into Sun was dropped.

Additionally, despite the resistance of Republicans, Democrats have attempted to ensure minority party representation at regulatory agencies like the CFTC and SEC, preventing any single party from dominating regulatory decisions.

What happens if Congress fails to decide by the end of January?

If the bill does not get any sort of markup by the end of January, its chance of getting passed will go way down. The bill will need to be through the Senate by April, or its chances of becoming law in 2026 would be very slim.

Aside from that, the continuing resolution, which ended the last government shutdown, expires on January 30. A government shutdown would completely derail progress on crypto legislation.

The November 2026 midterm elections might cause lawmakers to just hold off on any legislation until they see the results of the poll.

The House passed its version of market structure legislation called the Digital Asset Market Clarity Act in July 2025 with strong bipartisan support. Now, the House is waiting for the Senate to advance its version so the two chambers can reconcile differences and send a unified bill to President Trump.

Industry advocates have given the legislation between a 50% and 60% chance of becoming law in 2026. The market structure bill represents the second major piece of crypto legislation that Congress would pass, following the GENIUS Act that President Trump signed into law on July 18, 2025. The GENIUS Act requires stablecoin issuers to maintain 100% reserve backing with liquid assets like U.S. dollars or short-term Treasury securities and subjects them to strict anti-money laundering requirements.

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